Courtesy of Bruce T. Martin Photography

The nation’s largest life science development firm continues to sell off non-core assets amid a downturn in demand for lab space.

Alexandria Real Estate Equities said the loss of an undisclosed potential joint venture partner prompted it to sell $225 million of real estate assets during the second quarter.

Alexandria “pivoted our strategy toward harvesting value by selling 100 percent interests in non-core properties and/or properties not integral to our megacampus strategy” rather than seeking another joint venture partner to proceed with the project, the company said in its second-quarter earnings release.

The Pasadena, California-based REIT sold the Riverside Center office complex at 275 Grove St. in Newton for $177.5 million in June, after dropping plans for a lab conversion to create one of its large-scale “megacampuses” in what would have been a new landing spot for area life science companies.

Alexandria also unloaded a five-building portfolio in Cambridge and Waltham to a joint venture of Alloy Properties and Anchor Line Partners for $266 million.

Alexandria said it still expects to spend $3.5 billion on construction in 2023, unchanged from its previous guidance.

During the second quarter, Alexandria reported funds from operations of $382.4 million, or $2.24 per share.

Alexandria owns nearly 75 million square feet of real estate assets nationwide, including 41.1 million square feet of operating properties, 5.3 million square feet of projects under construction, 9.4 million square feet of redevelopment projects and a 19.1 million-square-foot future development pipeline.

Greater Boston comprises 29 percent of the company’s assets, comprising 76 properties totaling 13.3 million square feet.

Alexandria Shifts to Sell Strategy for Non-Core Properties

by Steve Adams time to read: 1 min
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